Finding 1173232 (2025-001)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-02-11
Audit: 386709
Organization: Indian Town Home Association (IL)

AI Summary

  • Core Issue: There is a significant weakness in the internal controls related to compliance, specifically in the segregation of duties.
  • Impacted Requirements: This finding affects compliance with federal regulations under the U.S. Department of Housing and Urban Development for the Section 202 program.
  • Recommended Follow-up: Review and strengthen internal controls to ensure proper segregation of duties to mitigate risks of non-compliance.

Finding Text

Segregation of Duties See Section II – Financial Statement Findings Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Supportive Housing for the Elderly (Section 202) Mortgage Financing Section 202 Project Rental Assistance Contract Assistance Listing #: 14.157 Questioned Costs: None Type of Finding: • Material Weakness in Internal Control over Compliance

Corrective Action Plan

Supportive Housing for the Elderly (Section 202) Mortgage Financing– FAL No. 14.157 Section 202 Project Rental Assistance Contract – FAL No. 14.157 Recommendation: When a lack of segregation of duties exists, management’s and the board’s close supervision and review of accounting information are the best means of preventing or detecting errors and irregularities. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: Management will continue to monitor monthly financial results and accounting information as correction is not practical. Name(s) of the contact person(s) responsible for corrective action: Jennifer Medearis Planned completion date for corrective action plan: In process

Categories

Internal Control / Segregation of Duties Material Weakness

Other Findings in this Audit

  • 1173229 2025-001
    Material Weakness Repeat
  • 1173230 2025-002
    Material Weakness Repeat
  • 1173231 2025-003
    Material Weakness Repeat
  • 1173233 2025-002
    Material Weakness Repeat
  • 1173234 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $1.82M